JT03341873Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2013)50 Unclassified English -Or. English ECO/WKP(2013)50 2 ABSTRACT/RÉSUMÉ Assessing the efficiency of welfare spending in Slovenia with data envelopment analysisThis paper derives estimates of the efficiency of welfare spending in Slovenia and the other OECD countries from data envelopment analysis based on model specifications used in earlier OECD studies. Results suggest that Slovenia ranks about 25 th among OECD countries for output efficiency: for a given level of spending outcomes fall short by around 3.5% in health care, by 10% in secondary education and by around one third in public administration. Results also suggests that Slovenia ranks 18 th to 27 th in the OECD for input efficiency as the same outcomes could be reached by scaling back costs by around half. Alternatively, spending increases could be contained and outcomes improved by increased cost efficiency. Statistical uncertainty surrounding input efficiency estimates is high for countries with the smallest scope for potential savings. Confidence intervals around output efficiency scores are also wide for some emerging market economies.JEL Classification: C14, I18, I28, I38, H83

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The opinions expressed in this article are those of the authors and do not necessarily reflect the views of the Banque de France or the institutions with which the authors are affiliated. The authors are grateful to Julien Matheron for providing programmes and useful suggestions. They also wish to thank Iikka Korhonen and Marina Vasjukova as well as the participants of the Third Workshop on Emerging Markets (Bank of Spain, Madrid, 24-25 November 2005) for valuable comments and discussions. The standard disclaimer applies.

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